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Article: A New Way to Judge the Buyside.(Feature Story)
- Article from:
- Traders
- Article date:
- March 1, 2009
- Author:
CopyrightCOPYRIGHT 2009 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Nina Mehta
In the quantitative world of finance, evaluating the performance of traders has long been an important but elusive task. Now, as the buyside does more self-directed trading, it's becoming even more important to assess how well traders do their job and how much money this puts in the pockets of fund owners.
Clear answers aren't easy to come by. But Morgan Stanley Investment Management is currently implementing a framework it believes will quantify the value a trader delivers to the firm's investment process. MSIM, which plans to compensate traders based, in part, on the numbers that emerge from its calculations, hopes other firms will ...